Deliberations within the Obama administration over whether to offer an olive
branch to Iran by sending a letter to President Mahmoud Ahmadinejad have
been thrown into turmoil by his belligerent demand for an apology.

By David Blair, Diplomatic Editor, and Toby Harnden in Washington

12:44AM GMT 29 Jan 2009

President Barack Obama has been considering how to respond to a letter from Mr Ahmadinejad congratulating him after his election. It has been reported that at least three drafts of a response have been considered.

But in his first speech since Mr Obama's inauguration, Mr Ahmadinejad was typically uncompromising, making no concessions to the change of leadership in America.

"If you talk about change, you must put an end to the US military presence in the world, withdraw your troops and take them back inside your borders," he said.

The United States should "stop interfering in other people's affairs," said Mr Ahmadinejad. If Mr Obama behaved like George W. Bush, then "our response will be the same that we gave to Bush during the past years," he said.

In his first television interview, Mr Obama had commended Iranians as a "great people" with a "great civilisation", adding: "If countries like Iran are willing to unclench their fist, they will find an extended hand from us."

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But Mr Ahmadinejad responded in familiar fashion. America had "stood against the Iranian people for the past 60 years," he said in a televised speech. "Those who speak of change must apologise to the Iranian people and try to repair their past crimes."

Mr Obama was debating whether a letter could allay the suspicions of Iran's leaders and pave the way for him to engage them directly in a major break with President George W. Bush's policy.

Diplomatic drafts give assurances that Washington does not want to overthrow the Islamic regime, but merely seek a change in its behaviour.

If sent, the letter would probably be addressed to the Iranian people and sent to Ayatollah Ali Khamenei, Iran's supreme leader, or released as an open letter.

Mr Ahmadinejad has vowed never to compromise over Iran's nuclear programme, which is the focus of the confrontation with America.

But Mr Ahmadinejad faces re-election in June and Iran's declining economy has damaged his standing, leaving his career in the balance.

Powerful figures, however, have rallied to the president's support, notably General Hassan Firouzabadi, the army chief of staff, who publicly advocated his re-election.

Gen Firouzabadi's intervention may be a sign that Iran's Supreme Leader, Ayatollah Ali Khamenei, still backs Mr Ahmadinejad. An aide said the president would seek re-election. But Iran's policy towards America will probably not be settled until after June's poll.